The PFC has been established
under the State Financial Corporation Act,1951,for providing medium
and long term loans to small and medium scale industrial undertakings
in the state of Punjab under various schemes.
It generally grants
term loans for creation/acquisition of fixed assets like land ,building,
plant and machinery, provides guarantee against deferred payments for
the purchase of capital goods and offers underwriting facility on issue
of stocks and shares to companies. The Corporation also provides financial
assistance for setting up of Hotels, Nursing Homes/small hospitals,
IT Industries, development of industrial estates and purchase of transport
vehicles etc. The Corporation has sanctioned (effective) and disbursed
loans of Rs.1096 crores and Rs.1060 crores respectively upto 31st March
2003 more than 13596 units. The break-up is as under:-
: (Rs.in crores)
|Small Scale Sector
|Other than small
The performance of Corporation
in the key areas of operation for the last two financial years is under:
The Corporation has
a decentralized setup comprising of nine district offices having
power to sanction and disburse loans upto Rs.30 lacs. The loans above
Rs.30 lacs and upto Rs.240 lacs are processed at Head Office. The Corporation
may also finance cases more than Rs.240 lacs with the permission of
SIDBI on case to case basis.
OF THE LOANS:
The Corporation grants loans for setting up new industrial concerns,
expansion and modernization of existing concerns and rehabilitation
of sick industrial concerns, which have been assisted by it. The loans
are generally granted for creation of fixed assets such as land, building
and machinery . However, it also grants composite loan for meeting working
capital requirements to new tiny and small units with project cost upto
Rs.200 lacs under Single Window Scheme. The Corporation also associates
itself with Punjab State Industrial Development Corporation (PSIDC),
commercial banks and other Financial Institutions for financing industrial
project costing upto Rs,.12 crores.
The public limited companies, private limited companies, cooperative
societies, partnership firms, sole-proprietorship firms of HUF concerns
engaged in, or proposing to be engaged in any one or more of the following
industrial activities in the State of Punjab, are eligible for financial
assistance from the Corporation.
Besides providing financial assistance for industrial units, engaged/to
be engaged in manufacturing ,processing, preservation, packaging of
a product, PFC also provides assistance for the following activities:-
TOURISM : Hotels
,restaurants, motels ,tourist bungalows, tourist service agencies, cultural
centers, convention centers, amusement parks, health clubs, etc.
HEALTH : Hospital, nursing
homes, poly-clinics, diagnostic laboratories & for purchase of electro
for transportation of passengers goods, ropeways lifts, tourist coaches
- Repair & maintenance workshops computer centers, weighing bridge,
communication facilities, Fax, E-mail, Telecommunication, Public Call,
Office etc. etc.
R & D Engaged in
providing technical know-how, consultancy for promotion of industrial
INFRASTRUCTURE: - To
set up industrial parks, estates, areas, construction, maintenance,
development of roads, bridges etc. Earth moving equipment, tube well
boring, zigs and tools.
/ Arrangement of sales outlets of for renovation of existing sales,
outlet ,purchase of mobile sales van.
AGRO- Tissue culture,
floriculture, pisciculture, poultry and hatchery.
a) The expression "Processing of goods" includes any art
of process for producing, preparing of making an article by subjecting
any material to a manual, mechanical chemicals electrical or any other
like operation (s). However , the industrial companies/concerns with
paid up capital, equity and free reserves exceeding Rs.10.00 crores
are not eligible for financial assistance.
b) The above list is
only illustrative and by no means exhaustive and PFC looks forward to
assist technically and financially sound new industrial projects.
The Corporation provides loans upto the following limits fixed under
the SFCs Act,1951:
|- Public limited company/private
limited company/co-operative society
|- Partnership/sole proprietorship/others
|- The Corporation in participation
with the Punjab State Industrial Development Corporation, Commercial
Banks and All India Financial Institutions, finances projects
costing upto Rs.12 crores.
RATE OF INTEREST:
The Corporation is charging interest at the following rates:-
|(a) Loans upto Rs.0.50 lacs
|(b) loans above Rs.0.50 lacs
upto 2.00 Lacs
|(b) loans above Rs.2.00 lacs
upto 25.00 Lacs
|(b) loans above Rs.25.00 lacs
|(c) Under TDM & ISO-9000
|(d) For non-SSI Units
* 1% Rebate on timely
NOTE: The above
rate of interest is subject to change and exclusive of interest tax
& after providing rebate of timely payments.
Loans are advances against first registered mortgage of fixed assets
of the industrial concerns. The Corporation also accepts personal guarantee
of the partners of the concern or of the directors in case of a limited
company wherever it is considered necessary. It may also accept when
it is considered necessary, the immovable properties in the State of
Punjab owned by the individual partner (s) or by the members of the
Hindu Undivided family, as the case may be, as on addition security.
Loans for the purchase
of generating sets and transport vehicles are granted against hypothecation
of the assets purchased with the financial assistance, In case of transport
vehicle the loanee or his guarantor has also to offer immovable property
in the State of Punjab as Security in addition to hypothecation of the
Loans under Single Window
Scheme are granted against first charge on the entire assets of the
concern both immovable and movable and collateral security of immovable
property equivalent to 125% working capital loan. In case of loan to
small scale units set up in rented premises, hypothecation of plant
& machinery and other equipment and personal guarantee of promoters
is obtained . Further Third party guarantee of reputed, resourceful
person(s) or collateral security is to be obtained.
AND MODE OF REPAYMENT:
Period of repayment of loan is upto 10 years However, the exact
period of repayment in each case is fixed keeping in view the repayment
capacity of the concern. The interest and installments of principal
are to be repaid quarterly further, moratorium in repayment of principal
is provided for one to two years.
PROCEDURE FOR SEEKING
An Entrepreneur/industrial concern interested in seeking financial
assistance from the Corporation is required to applied or contact the
Head Office or any of the District Offices of the Corporation for requisite
application forms. The entrepreneur is required to give brief information
of the scheme. constitution and the amount of loan required while requesting
for application forms. The application forms are supplied free of cost.
The Corporation ,however, charges one time non-refundable fee from applicants
seeking assistance for more than Rs.5.00 lacs for the processing of
loan applications. The borrower will have to pay the processing fee
@0.25% of the loan amount applied for. The amount so payable shall be
deposited by bank draft drawn in favour of the Punjab Financial Corporation
in two installments as under:-
a) 50% of the processing
fee is to be deposited alongwith the loan application.
b) Balance 50% of the
processing fee is to be deposited with 15 days from the date of issue
of the sanction letter.
The processing fee is
non-refundable. There is no processing fee of the loan upto Rs.5.00
The applicant is required
to fill in the forms and comply with formalities, after going through
the check list which is supplied with the application forms. The check
list enumerates the documents/information which should be enclosed with
the application forms. The Corporation assists the applicant in filling
up the application forms and renders any other related guidance.
REQUIRED WITH THE LOAN
i) Required loan application forms in duplicate, duly filled in
alongwith processing fee mentioned above.
ii) Regarding Promoters.
a) Detailed bio-data
of the promoters, age, attested photographs, educational and provisional
qualifications, past experience and experience obtained in the particular
industry, residential address and relationship with other promoters.
b) List of total movable
and immovable assets owned by each promoter and the liability there
against alongwith proof of assets.
c) Income tax and wealthy
tax details of the last three years specifying those assessed and paid
alongwith the copies of assessment orders/returns filled.
d) Credit worthiness
report from the bankers for all promoters
iii) Sister Concerns:-
a) Name & brief
history of other concern(s) in which the promoter(s) are interested.
b) Copies of the audited
balance sheets and profit and loss accounts for the last three years
for each of the above mentioned sister concern(s)
c) Copy of the instructions
issued to the bankers to give full information, above your concern on
request from the Corporation.
iv) Regarding Govt.
a) Certified copy of
the registration as small scle industrial unit from District Industries
Center or registration with Secretariat of Industrial Development, Government
of India, for other than small scale units.
b) Memorandum and Articles
of Association (if company "s case)
c) Certified copy of
the certificate of incorporation ( if companys case).
d) Certified copy of
partnership deed (if partnership concern).
e) Certified copy of
registration certificate issued by the Registrar of Firms on Form A
& C (if partnership concern).
the Tourism Department, Punjab and license for the earning house (incase
of hotel industry).
g) Permission /Licensee
should be produced from the competent authority (in case of textile/drugs/food
h) Details of the power
requirement and tie up arrangements with PSEB.
i) Effluent Treatment
Scheme/Permission from Pollution Control Board.
j) Permission from Director,
Housing & urban Development Punjab, Chandigarh, in respect of units
to be located in Patiala and Ropar Districts.
V) The Proposal:-
a) Cost of project including
cost of land, building, machinery miscellaneous items, preliminary and
[preoperative expenses, margin money for working capital and means of
b) Certified copy of
the recent date balance sheet.
c) Certified copies
of the audited balance sheets and profit and loss accounts for the last
three years (if existing concern).
d) Details of the existing
building, if any.
e) Details of the existing
machinery complete with name, specifications, year of purchase, price
and make /supplier (if any).
f) Details of land alongwith
certified copy of sale deed of land underneath the factory building
(The land should be in the name of the sole-prop/firm/company). Details
of land in the prescribed Performa should be submitted.
g) Details of the building
proposed to be constructed alongwith the building plant duly approved
by the Competent Authority of the area.
h) Details of the machinery
proposed to be purchased complete with name, specifications, price and
make/supplier alongwith the basis of selection of the machinery, supplier
like catalogues of each machinery, name of the concerns to whom machinery
have been supplied with name and complete addresses.
i) Three quotations
in respect of each item of plant and machinery proposed to be purchased.
j) In case of imported
machinery, a copy of capital goods clearance alongwith the basis of
selection of machinery suppliers and agreement made with them be supplied.
k) List of Senior Persons
to be engaged by the concern like Technical Administrative and Managerial
Persons and organization chart relating to the proposed management structure
of the concern, be provided.
l) Statement of working
capital requirements for three years.
m) Details of various
raw materials alongwith name, specifications, consumption, present price
and name of supplier.
n) Details of specification
of the product/product mix proposed to be manufactured with installed
capacity of each and basis determining the installed capacity of the
o) Details of the manufacturing
p) Justification of
improvement of working results in case of expansion, diversification
and replacement project,
q) Details of profitability
and case flow statement of the scheme. for ten years.
r) Details of the proposed
s) In case of collaboration
for technical know-how with outside agencies, furnish the details of
their reputation, past experience in the proposed line and copy of the
t) Marketing and development
scope of the proposed project, specifically and regained alongwith demand
and supply data, existing capacity, users of the proposed product and
their requirement. A copy of the Market Study conducted in connection
with the project be submitted.
u) In case of execution
of projects on turn key basis by outside agency, furnish the details
of their reputation ,past experience, list of similar projects executed,
qualifications and strength of its staff and a copy of proposed agreement.
APPRAISAL SCRUTINY OF LOAN APPLICATIONS AND ARRANGING INSPECTION:
Loan application for assistance upto Rs.30 lacs are processed by
the district offices in respect of the districts within their jurisdiction
Loan applications for assistance more wherever necessary and preliminary
discussions are held with the promoters for conceptualization of the
project. The applications for loan above Rs. 30 lacs are processed at
After preliminary scrutiny
of loan application, the case is placed before the Screening Committee
which is normally held twice a month, which discusses the case with
the promoters and satisfied itself regarding viability projects and
the norms of the appraisal . Thereafter, the Corporation arranges appraisal
of the project. Efforts are made to ensure that applications are processed
expeditiously, informations sought form the parties Machinery
loading chart in order to justify the plant and machinery proposed to
Various aspects of project
appraisal are discussed during appraisal.
A) TECHNICAL APPRAISAL:-
- Product mix ,manufacturing
process and installed capacity
- Location/site selection
and infra-structural facility.
- Size of the plant
and the project.
- Building requirement
- Selection and procurement
of plant and machinery.
- Raw material cost
- Implementation schedule/gestation
AND ECONOMIC APPRAISAL:-
- Demand data
- Supply data
- Pricing, government
policies and permission
- Employment generation
- Promoters, manpower
and soundness of the proposal
- Appraisal of management
and management problem
- Capital cost of the
project and means of financing
- Financial projection
like profitability estimates, cash flow and sensitivity analysis.
- Analysis of the working
of sister concern, cash flow and working of the existing concerns for
the last three years.
- Analysis of various
rations and break even point, IRR and NPV etc.
SCHEMES BEING OPERATED
1. COMPOSITE LOAN
Borrowers: Artisans Village & Cotton industries and small
scale industries in tiny sector.
(b) Purpose : Assistance for equipment
and working capital and also for work sheds.
(c) Norms: Loan
upto Rs. 5 lac is given under the scheme with nil promoters contribution
and repayment period is between 3 to 10 years with a moratorium period
of 12 to 18 months..
2. SINGLE WINDOW
a) Eligible Borrowers: Entrepreneurs setting up new projects
in SSI/Tiny Sector as well as to existing units for modernization, technology-upgradation
and socially viable sick units undertaking rehabilitation scheme.
b) Purpose: To provide both term loan for fixed assets and loan
for working capital through some agency.
c) Norms: A total project outlay including total working capital
requirement should not exceed Rs. 200.00 lac under the scheme.
3. MAHILA UDYAM NIDHI
a) Eligible Borrowers: Women entrepreneurs for setting up new projects
in tiny/small scale sector and rehabilitation of viable sick units excluding
b) Purpose : To meet th gap in the equity.
c) Norms: The capital cost of project including margin money
for working capital not to exceed Rs. 10.00 lac. The soft loan limit
is 25% of the cost of project subject to maximum of Rs. 2.5 lac per
project. The soft loan will carry service charges @ 1% PA.
4. TRANSPORT INDUSTRY:
a) Eligible Borrowers: Small road transport operators.
b) Purposes: For purchase of truck/bus/auto rickshaw, mini bus
for transportation of goods or passengers by road. Secondhand vehicles
are not eligible for assistance.
c) Norms: The quantum of loan is need based (maximum 20 vehicles
per operator including existing vehicles).
a) Eligible Borrowers: Ex-servicemen
(including windows of ex-servicemen ) sponsored by Director General
Re-settlement, Ministry of Finance, Govt. of India.
b) Purpose: For setting small industrial projects including service
industry and satisfied transport activities which are eligible for financed
as per ISI norms.
c) Norms: Cost of project not to exceed Rs. 15.00 lac. The assistance
will include soft loan to meet the gap in equity to Rs. 2.25 lac per
project. Soft loan will carry service charge @ 1% PA during the moratorium
period. Therafter, interest @ 6% PA.
6. NATIONAL EQUITY
a) Eligible Borrowers: Small entrepreneurs for setting up new projects
in tiny/small scale sector and rehabilitation of potentially viable
sick units. The sick existing tiny and small scale industrial unit and
service entrepreneurs include all industrial units and service industry
except road transport operator.
b) Purpose: To meet the gap
in minimum prescribed promoters contribution and or equity.
c) Norms: Cost of project not to exceed Rs. 50.00
lac. Soft loan limit is 25% of the cost of project subject to a maximum
of Rs. 10.00 lac per project. The service charge on soft loan will be
5%. The repayment period for soft loan is 7 years including moratorium
period of three years.
EQUIPMENT REFINANCE SCHEME:
a) Eligible Borrowers: Sole proprietorship, partnership,
co-operative Societies, Private & Public Ltd. Companies.
b) Purpose: The assistance of the scheme would be available
for acquiring capital goods, equipment (imported/indigenous) not related
to any specific project at 22.5% margin. The loan is repayable in three
years depending upon repayment capacity of borrowers.
c) Norms: The unit should have been in operation for
minimum 4 years (for automobile and electronic units minimum period
is two years) and earned profit/declared dividend during the two years
proceedings financial year and should not be in default with any financial
SCHEME FOR ASSISTANCE FOR MARKETING :
a) Eligible Borrowers: Sole proprietorship, partnership,
cooperative Societies, Private & Public Ltd. Companies.
b) Purpose: For setting up of new outlets of existing
concerns for marketing products of small, cottage and village industry.
c) Norms: The cost of project should not exceed Rs.
25.00 lac including land, building, showroom facilities, office equipment,
margin money for working capital and reasonable expenses to be incurred
on publicity. the proposed sale outlet shall mainly stock and sale the
products of small, cottage and village industry.
9.SCHEME FOR ASSISTANCE
TO SCHEDULED CASTES/SCHEDULED TRIBES ENTREPRENEURS:
a) Eligible Borrowers: SC/ST persons.
b) Purpose: Assistance for purchase of equipment and or making
capital, sole proprietor as well as partnership.
c) Norms: The maximum limit of loan under the scheme is Rs. 15.00
10. SCHEME OF TECHNOLOGY
DEVELOPMENT & MODERNIZATION (TDM):
a) Eligibility Borrowers: Sole proprietorship, partnership, co-operative
Societies, Private & Public Ltd. Companies.
b) Purpose: Assistance under the scheme would be available for meeting
the expenditure on purchase of capital equipment, need based civil works
and acquisition of additional land. Acquisition of technical know-how,
designs, drawings and fashion forecast where relevant to specific product
group. Upgradation of process technology and products with thrust on
quality improvement comparable with acceptable domestic and international
standards. Improvement in packaging. Cost of TOM and acquisition of
ISO 9000 series certification. Need based additional incremental margin
money for working capital.
c) Norms: Total project outlay not to exceed Rs. 100.00
lac preliminary and pre-operative expenses shall not be covered as part
of the cost of project. The prevailing rate of interest is 13.00% with
1% Rebate on timely payments.
11. GENERAL LOAN
a) Eligible Borrowers: All forms of organizations in the small scale
sector (i.e. proprietary, partnership, company, co-operative society
etc). For infrastructure development-all forms of organizations such
as public/(p) Ltd. Cos. partnerships, sole proprietary, municipalities.
b) Purpose: For setting up new small scale units or expansion,
modernization, diversification, etc. of existing units and for all activities
eligible for assistance under the scheme including professional practice/consultancy
venture and service sector units such as tourism related activities/hospitals/nursing
polyclinics/hotels/restaurants/marketing and industrial infrastructural
c) Norms: The cost of project in respect of service sector unit
not to exceed Rs. 10.00 crore and in case of manufacturing units Rs.
12. SCHEME FOR ACQUISITION
OF ISO 9000 SERIES:
All existing units under SSI sector having good record for past
performance and sound financial position, provided the unit is in operation
for a period of atleast 4 years and have earned profits during preceding
two financial years are eligible under this scheme for the acquisition
of ISO 9000 series.
Expenses of consultancy, documentation, audit certification, equipment
and other instruments required would be taken into account for determining
the directly/indirectly or and have plans to manufacture product for
export under this scheme. The concessional rate of interest @13.00%
with 1% Rebate on timely payments is charged under this scheme.
13. SCHEME FOR TEXTILE
INDUSTRY UNDER TECHNOLOGY UPGRADATION:
Eligible Borrowers: Sole proprietorship, partnership, co-operative
Societies, (P) & Public Ltd. Companies in the textile and cotton
ginning and pressing industries, The textile industry comprises of the
filament yarn texturising, crimping and twisting
filament yarn (VFY).
knitting including non-wovens, fabric embroidery and technical
of fibres, yarns, fabrics, garments and made-ups.
b)Purpose: Assistance under the scheme would be available
for meeting the expenditure on:
Purchase of capital equipment, need based civil works and acquisition
of additional land.
Acquisition of technical know-how, designs, drawings and fashion forecase
where relevant to specific product group.
Upgradation of process technology and products with thrust on qualify
improvement comparable with acceptable domestic and international standards.
Improvement in packaging.
Cost of TQM and acquisition of ISO 9000 series certification.
Need based additional/incremental margin money for working capital.
c) Norms: To provide encouragement to textile industrial
units (including units in the Cotton Ginning and processing sectors
upgradation and to modernize their production facilities. Assistance
is available for installation of specified types of machinery and for
eligible activities in a new unit or in an existing unit by way of replacement
of existing machinery and/or expansion. New units must set up their
entire facilities only with the appropriate eligible technology. A unit
can undertake one or more activities listed by GOI. However, multiple
activities can be undertaken only in an integral manner i.e. by way
of forward or backward integration. It is however, clarified that weaving/knitting
and garment manufacturing or weaving/knitting and processing or garment
manufacturing and processing will be considered and integral activities.
The scheme would be in operation for a period of five years from April
1, 1999 to March 31, 20004.
The scheme envisaged interest incentive of 5% and/or cover for exchange
rate fluctuation upto 5% p.a. on the loans availed by small scale units
from primary lending institutions. Refinance is availed from SIDBI is
not compulsory. However, where refinance is availed form SIDBI such
proposals shall conform to norms and parameters stipulated by SIDBI,
in addition to the guidelines prescribed by Govt. of India.
Details including the list of machinery are furnished in Technology
Upgradation Fund Scheme booklet issued by GOI.
14. QUICK FINANCE
This scheme is meant to serve the existing business concerns and
the concern financed by the Corporation in the past by providing Quick
Finance by way of working capital facility upto Rs. 50.00 lacs and term
loan facility upto Rs. 240 lacs.
1. The unit should be in production for period of three years.
2. The unit should be
making book profit i.e. profit tax for 2 out of last 3 years.
3. The unit should have
minimum earning per share more than two in case of limited companies
or positive cash accruals in case of proprietary or financial concerns
4. The unit should be
regular in repayment of dues of financial institutions.
of the forms of application
of the assistance applied for
On acceptance of the
simplified form, the process of sanction under the above scheme shall
be completed within 7 days and the disbursement can start immediately
thereafter depending upon the requirements of the concern. No application
after receipt shall take more than 15 days.
15. SCHEME FOR SHORT
The availability of adequate funds for the smooth running of the
industrial unit is most vital for its growth in the small and medium
scale sectors . The scheme for short term financial assistance with
the following main features has been given as under:-
a) The scheme is meant
for small scale unit and medium scale industrial units financed by the
b) The units financed
by the Corporation are in existence for a minimum period of three years.
having earned profits during the last two years and not in default with
PFC/Bank/other financial institutions.
c) The assistance above
Rs.10 lacs and upto Rs.50 lacs per unit shall only be considered.
The short term loan
will be given for the purchase of raw materials and imported materials
in bulk or to meet the peak season demand of consumable and for execution
of specific orders and/or to meet the short term requirements of the
a) RATE OF INTEREST: 17.5% per annum.
b) REPAYMENT PERIOD: The repayment period varying between 8-11 months supported by advance
i) The personal guarantee of the directors/promoters
ii) Extension of charge
on the existing assets and also collateral security if required so that
total assets mortgaged with the Corporation should be twice the amount
of existing and proposed loans. The margin on security shall be retained
at 50% minimum in favour of the Corporation for the proposed short term
d) COMPUTATION OF
SHORT TERM LOANS: The proposed term loan shall be restricted to
25% of the projected level of sales minus assistance for working capital
sanctioned by the commercial bank subject to a maximum of Rs.50 lakhs.
e) PROCESSING FEE: 0.5% of the assistance applied. In addition 1% shall be charged
as up-front fee if the assistance is sanctioned and accepted by the
borrower. The assistance sanctioned to the concern shall be reviewed
annually for which fee of Rs.5,000/- shall be charged on renewal basis.
f) GENERAL CONDITIONS:
a) The disbursement of the loan shall be made through a online account
maintained with the principal bank of the concern.
b) The bank of the concern
shall be associated while deciding the maximum limit of the short term
loan and a copy of the sanction and conditions of sanction shall be
conveyed to the Principal Banker of the concern.
NOTE: The financial
parameters are as at present and subject to change.
g) DEBT EQUITY NORMS:-
For small scale units:-
I) Loans upto
above Rs.10.00 lacs
Other than small scale units
16. SCHEME FOR FINANCING
a) Objective: The objective of the scheme is to provide financial
assistance for establishing Commercial Complexes, Showrooms, Sales,
Outlets, Departmental Stores and Shopping Malls etc
b) Eligibility Criteria: Sole Proprietorship
firms, Partnership concerns and Companies fulfilling the following conditions
(i) The land and building should be in the name of Sole Proprietor,
Partners or Company.
(ii) Location of Commercial Complexes, Showroom etc should be within
the approved area of the respective competent authority.
(iii) Assistance for renovation for the existing commercial complexes
may also be considered under the scheme.
(iv) Proposal where land is on lease are not eligible.
(v) Minimum Promoter's contribution shall be 40%.
(vi) Minimum Collateral Security shall be 30%.
c) Terms of Assistance
(i) Interest Rate : As applicable in case of SSI units.
(ii) Repayment Period : The loan shall be repayable in 8 / 10
years including moratorium period of 12 months.
17. SCHEMES FOR FINANCING WARE HOUSES / PLINTHS
a) Objective: This
scheme is aimed at providing financial assistance for construction of
Warehouses / Plinths for storage of food grains in the State.
b) Eligibility Criteria: Sole Proprietor
/ Partnership concerns fulfilling the following conditions :-
(i) The land is owned by promoter.
(ii) All those concerns which proposes to built ware houses under Guaranteed
Land Scheme of PSWC, PUNSUP, MARKFED, PAIC or any other Government Agency.
(iii) Promoter's contribution shall be 40%.
(iv) Collateral Security shall be 50% to 60% of the amount of term
c) Terms of Assistance
(i) Interest Rate : As applicable in case of SSI units. (Subject
(ii) Repayment Period
a) 8 - 10
years in case of godowns
b) 3 - 5 years fin case of plinths
c) The moratorium period will be 12 months or upto the date
of receipt of first rent which ever is earlier.
18. SCHEMES FOR ASSISTANCE
TO INFORMATION TECHNOLOGY AND SOFTWARE DEVELOPMENT SECTOR
a) Objective: To
fulfill financial requirements for the Information Technology and Software
Development in the State.
b) Eligibility Criteria: All new Industrial
units are eligible for assistance under the scheme from the corporation.
However, preference will be given to the units established by persons
with sufficient experience, expertise and exposure in software development.
c) Terms of Assistance
(i) Interest Rate : Rate of interest as applicable to General
Term Lending Scheme.
(ii) Repayment Period : Repayment period not exceeding 5 years
including the moratorium period of 12 months where the premises
are owned by the promoter and six months in case of rented premises
or premises on lease.
d) Promoter's Contribution: Promoter's contribution shall be
TO SANCTION LOANS:
i) Executive Committee upto Rs.125.00 lacs.
ii) Board of Directors
above Rs.125.00 lacs
The Corporation is registered as Category I Merchant
Banker with the securities and Exchange Board of India (SEBI) and sponsoring
member of over the counter Exchange of India (OTCET) .The Corporation
offers facilities like public issue management, project counseling,
merchant banking appraisal, participation in bought out deal, under-writing
of Public Issue, Bills Discounting etc.
In addition, it provides
quick and timely need based finance to the existing profit making concerns
with good track record. The corporation offers the following innovative
schemes for concerns satisfying the eligibility criterion:-
i) The units are in
small scale/medium scale sector.
ii) Units are in existence
for minimum three years and having earned profits during the last two
iii) Regular in repayment
/payment of dues of Financial Institutions.
PFC-LINE OF CREDIT
The annual plan of industrial concern for term credit for purchase
of machinery/equipment can be sanctioned in the form of Line of Credit,
while disbursement can be availed on identification/selection of equipment/machinery
at a later date. This scheme is meant for the existing financed units
by the Corporation. The term finance available under the scheme shall
be repaid within a period of four years, rate of interest shall be one
percent above the normal rate.
DISBURSEMENT OF LOANS:
After the loan is sanctioned by the competent authority a letter of
sanction is issued to the loanee concern. The letter of sanction contains
the general terms and conditions which the concern is required to comply
with before the disbursement of the loan.
OFFICES OF PFC
HEAD OFFICE : PUNJAB FINANCIAL CORPORATION,
95-98,BANK SQUARE, SECTOR 17-B.,
PHONE: +091 - 172 - 2708420, 2709295, 2709296, 2709298, 2704805,
FAX: +091 -172 - 2709297
Website : http://punfincorp.nic.in
DISTRICT OFFICES: PHONE
1. PUNJAB FINANCIAL
PLOT NO. 2, DISTT. SHOPPING CENTRE,
2. PUNJAB FINANCIAL
CORPORATION, 2212746, 2217806
A-6, CIVIL LINES, BATHINDA
3. PUNJAB FINANCIAL
CORPORATION, 220060, 225753
DISTRICT INDUSTRIES CENTRE,
MALWAL ROAD, FEROZEPUR
4. PUNJAB FINANCIAL
SCO 6,INDUSTRIAL DEVELOPMENT
COLONY, JALANDHAR ROAD, HOSHIARPUR.
5. PUNJAB FINANCIAL
CORPORATION, 2227414, 2242654
MAIN GARHA ROAD,
ABOVE BANK OF INDIA, ,JALANDHAR
6. PUNJAB FINANCIAL
CORPORATION, 2538502, 2539312
ABOVE BANK OF MAHARASHTRA,
LINK ROAD, LUDHIANA.
7. PUNJAB FINANCIAL
CORPORATION, 2362357, 2362494
BUILDING NO.1,1ST FLOOR,
NEAR SANDHU HOSPITAL,
8. PUNJAB FINANCIAL
SCF 41, 1ST. FLOOR, PHASE IX,
MOHALI DIST. ROPAR.
9. PUNJAB FINANCIAL
CORPORATION, 2-34374, 2-36556
DC OFFICE ROAD,